Human Resources departments around the world are transforming themselves into strategic business partners. In a 2015 HR Department Survey, 33.3% of respondents said that management views HR as a strategic business partner, and an additional 25.6% view it as a credible business partner. In addition, almost half of all senior HR managers in Southeast Asia report directly to a C-suite executive. Southeast Asia HR leaders also surpass the global average when it comes to having responsibility for things like improving talent acquisition, talent management, performance management, and talent retention. Fulfilling that strategic role requires in-depth insight into many different processes, and one of the best ways to get that insight is through HCM (human capital management) technology.
Following are a few of the ways HCM technology can help HR professionals meet their increased responsibilities:
- Enhancing payroll efficiency: According to an ADP Research Institute Global HCM survey, 62% of Asia-Pacific HR leaders ranked enhancing payroll efficiency as a critical part of their HCM strategy. One reason for the increased focus on payroll efficiency may be that leaders at companies headquartered in the Asia-Pacific region manage an average of 36 different payroll systems, which is 50% higher than the national average. Regardless of the reason, it’s clear that HR leaders in Asia see the acquisition of a unified payroll system as critical to both HCM and business success.
- Monitoring compensation: While payroll functions revolve around getting the right amount of money to the right people at the right time, compensation takes a broader view. HCM technology can not only reveal inequities in compensation, it can help employers remain competitive by benchmarking their compensation practices with industry norms.
- Optimizing talent acquisition, retention, and development: HCM technology can be a critical part of identifying and recruiting top talent, but the benefits extend far beyond the hiring stage. It can also enhance employee engagement, especially when it gives employees the means to find their own solutions to employment-related issues. In addition, HR managers can use the technology to analyze employee skill sets and performance to make sure employees are placed at the right spots to identify the development opportunities that will prepare them for the next step in their careers.
- Facilitating compliance: A robust HCM solution can also help global businesses remain compliant with laws and regulations that can vary widely from one country to another. The right technology can both provide guidance and alert managers to potential violations.
- Improving reporting: HCM technology can automate critical analytics, providing insight into things like cost-per-hire, time-to-hire, average tenure, average time-to-promotion, and even things like which educational backgrounds are most predictive of employee success. All of the pertinent data is already in the system, so it’s simply a matter of using embedded analytics to provide the needed answers.
As the role of the HR leader expands to that of strategic business partner, HR professionals both in Asia and across the globe are looking to Human Capital Management technology to help them fulfill their new responsibilities.